AMAT Applied Materials
$417.99
▼ 2.8%Updated Oct 16, 2:25 PM ET
Report Card
AMAT at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Favorable · 68/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 257.0% in the year to Jul 6, 2026
Key Metrics
Market Cap
$478.79B
P/E
39.65x
Forward P/E (est.)
30.59x
ROE
39.8%
Revenue Growth
3.3%
EPS Growth
29.6%
Profit Margin
29.3%
FCF Yield
1.5%
Debt / Equity
0.32x
ROIC
22.0%
Interest Coverage
34.83x
Current Ratio
2.51x
Dividend Yield
0.4%
Implied Growth (rev. DCF)
7.7%
Rating Score
68/100
Business Overview
Applied Materials (AMAT) is a mega-cap company in the Semiconductor Materials & Equipment industry, part of the Information Technology sector of the S&P 500, with a market value around $478.79B.
In its latest reported year it generated about $28.37B in revenue and $7.00B in net profit.
Our model rates AMAT Favorable (68/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (8 years of history).
Profit margins and economic moats, explainedThe filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
47.6% average over the last 3 years
±1.5 pts around 46.3% across 8 years
grew in 6 of the last 7 year-over-year periods
positive in 8 of 8 years
22.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AMAT's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AMAT trades near $417.99, around its 50-day average ($490.19) and 200-day average ($339.35). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 55 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. AMAT's is $51.47 (~12.3% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, AMAT found buyers near $452.91 (support) and sellers near $739.67 (resistance); its 52-week range then was $154.47–$739.67. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.2× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
5.3%
Revenue moved from $16.70B in 2018 to $28.37B in 2025, a 7.9% compound annual growth rate. The most recent year was roughly flat (3.3%) year over year. Slower, mature growth is common for established businesses.
Profitability
Gross Margin
48.7%
Operating Margin
29.2%
Net Margin
24.7%
ROE
39.8%
Applied Materials keeps about 29.3% of each sales dollar as net profit, with a 48.7% gross margin and 29.2% operating margin. Return on equity is 39.8% and return on invested capital about 22.0%. Margins this wide usually signal pricing power or a cost advantage.
Debt Analysis
Total Debt
$5.45B
Net Debt
-$853.00M
Net cash position
Net Debt / EBITDA
-0.1x
Debt / Equity
0.32x
Leverage: debt-to-equity is 0.3x, and operating profit covers interest about 34.8x, with a current ratio of 2.5x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $5.45B of total debt against $6.30B of cash.
Cash Flow Analysis
Operating CF
$7.96B
Free Cash Flow
$5.70B
FCF Margin
20.1%
In the latest year Applied Materials produced about $7.96B of operating cash flow and $5.70B of free cash flow after capital spending. That is a free-cash-flow yield of about 1.5% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockThe payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
0.4%
Per share (latest FY)
$1.78
Total paid (latest FY)
$1.38B
History on record
8 years
dividend uses 24% of free cash flow
20% of net income paid out
total dividends increased 7 years in a row
no cuts in the last 8 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
39.65x
P/S
16.17x
P/B
6.64x
EV / EBITDA
—
AMAT trades at 39.6x trailing earnings (about 30.6x on estimated forward earnings), 16.2x sales, and 6.6x book value. Reverse-engineering today's price implies the market expects roughly 7.7% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
DCF Fair Value (Educational)
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
How this DCF estimate is calculatedDCF fair value / share
$118.63
Current price
$417.99
Starting FCF (latest 10-K)
$5.70B
Growth, years 1–5
3.3%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Metrics vs. Sector Range
Where AMAT sits versus the Information Technology companies we cover.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How AMAT stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
Among the 98 rated Information Technology companies we cover, AMAT ranks #29 by our overall rating. It trades at roughly in line versus the sector on earnings (39.6x P/E vs. 36.2x median) with a higher return on equity (39.8% vs. 17.5%) and slower revenue growth (3.3% vs. 17.7%).
P/E vs sector
39.6x
median 36.2x
ROE vs sector
39.8%
median 17.5%
Growth vs sector
3.3%
median 17.7%
Sector rank
#29
of 98 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 98 rated companies among the 230 Information Technology stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$172.26 – $287.10
vs. $417.99 today · implied CAGR -16% – -7%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $29.22B | $30.10B | $31.00B | $31.93B | $32.89B |
| Net income | $7.30B | $7.52B | $7.75B | $7.98B | $8.22B |
| EPS | $6.38 | $6.57 | $6.77 | $6.97 | $7.18 |
| Share price (low) | $153.05 | $157.64 | $162.37 | $167.24 | $172.26 |
| Share price (high) | $255.09 | $262.74 | $270.62 | $278.74 | $287.10 |
| CAGR (low–high) | -63% / -39% | -39% / -21% | -27% / -13% | -20% / -10% | -16% / -7% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for AMAT:
- High net margins (29.3%) point to pricing power or efficiency.
- Strong return on equity (39.8%) shows capital is put to work well.
- A conservative balance sheet (debt/equity 0.3x) lowers risk.
- Our model's overall read is Favorable (68/100).
Bear Case
The case against AMAT:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Valuation risk — at 39.6x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen favourably: Applied Materials is a mega-cap information technology business growing at a mature pace, with solid profitability, and a sound balance sheet. It trades at 39.6x earnings, which our model scores Favorable (68/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Latest SEC Filings
AMAT's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
AMAT — frequently asked questions
Is AMAT a good stock to buy?
We don't give buy or sell advice. Our model rates Applied Materials Favorable (68/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is AMAT's rating on The Stocks School?
Applied Materials currently scores 68/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does AMAT's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Applied Materials's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for AMAT calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this AMAT analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AMAT. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.